US Bank 2007 Annual Report Download - page 30

growth in commercial real estate loans (2.0 percent). Table 6
provides a summary of the loan distribution by product
type, while Table 7 provides a summary of selected loan
maturity distribution by loan category. Average total loans
increased $6.7 billion (4.8 percent) in 2007, compared with
2006. The increase was due to strong growth in retail loans
and moderate growth in commercial loans and residential
mortgages, while average commercial real estate loans were
essentially unchanged from a year ago.
Commercial Commercial loans, including lease financing,
increased $4.9 billion (10.6 percent) as of December 31, 2007,
compared with December 31, 2006. During 2007, the
Company made certain personnel investments and
organizational changes to better emphasize corporate banking,
with an enhanced focus on relationship banking. As a result of
these business initiatives and changing economic conditions, the
Company experienced growth in commercial loans driven by
new customer relationships, utilization of lines of credit and
growth in commercial leasing and corporate payment card
balances. Average commercial loans increased $2.4 billion
(5.2 percent) in 2007, compared with 2006, primarily due to
theseinitiativesandanincreaseincommercialloandemand
driven by general economic conditions in 2007.
Table 8 provides a summary of commercial loans by
industry and geographical locations.
Commercial Real Estate The Company’s portfolio of
commercial real estate loans, which includes commercial
mortgages and construction loans, was essentially unchanged
from a year ago. Total commercial real estate balances
increased $.6 billion (2.0 percent) at December 31, 2007,
compared with December 31, 2006. Average commercial
real estate loans decreased $.2 billion (.6 percent) in 2007,
compared with 2006. Since 2006, growth in commercial real
estate balances has been limited due to capital market
28 U.S. BANCORP
Table 8 COMMERCIAL LOANS BY INDUSTRY GROUP AND GEOGRAPHY
Industry Group (Dollars in Millions) Loans Percent Loans Percent
December 31, 2007 December 31, 2006
Consumer products and services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 9,576 18.8% $ 9,303 20.1%
Financial services. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7,693 15.1 6,375 13.8
Commercial services and supplies . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 4,144 8.1 4,645 10.1
Capital goods . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,982 7.8 3,872 8.4
Property management and development . . . . . . . . . . . . . . . . . . . . . . . . . . . 3,239 6.3 3,104 6.7
Agriculture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,746 5.4 2,436 5.3
Healthcare . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,521 4.9 2,328 5.0
Paper and forestry products, mining and basic materials . . . . . . . . . . . . . . . . . 2,289 4.5 2,190 4.7
Consumer staples . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,197 4.3 1,749 3.8
Transportation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,897 3.7 1,662 3.6
Private investors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,685 3.3 1,565 3.4
Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,576 3.1 1,104 2.4
Information technology . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,085 2.1 821 1.8
Other . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,444 12.6 5,036 10.9
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $51,074 100.0% $46,190 100.0%
Geography
California . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $ 5,091 10.0% $ 4,112 8.9%
Colorado. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,490 4.9 2,958 6.4
Illinois . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,899 5.7 2,789 6.0
Minnesota . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 6,254 12.2 6,842 14.8
Missouri . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,690 3.3 1,862 4.0
Ohio. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,554 5.0 2,672 5.8
Oregon . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,021 4.0 1,870 4.0
Washington . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,364 4.6 2,212 4.8
Wisconsin . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,337 4.6 2,295 5.0
Iowa, Kansas, Nebraska, North Dakota, South Dakota . . . . . . . . . . . . . . . . . . 5,150 10.1 4,308 9.3
Arkansas, Indiana, Kentucky, Tennessee . . . . . . . . . . . . . . . . . . . . . . . . . . . 2,066 4.0 2,070 4.5
Idaho, Montana, Wyoming . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,033 2.0 1,015 2.2
Arizona, Nevada, Utah . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1,947 3.8 1,602 3.5
Total banking region . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 37,896 74.2 36,607 79.2
Outside the Company’s banking region . . . . . . . . . . . . . . . . . . . . . . . . . . . . 13,178 25.8 9,583 20.8
Total . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . $51,074 100.0% $46,190 100.0%